INTRODUCTION TO PROJECT CYCLE MANAGEMENT Objectives: To review/present the project management definitions and basic concepts
What is a project? A project can cover a wide range of operations, from small initiatives to complex programmes. For instance, the authority of a small community can run a project to introduce a computerized management information system. This would involve purchasing computers and a software programme and training book-keepers. A more complex programme might be setting up a health micro-insurance scheme through the use of remittances, which would involve many stakeholders (the government, health care providers, advisory services, the diaspora members and their relatives, future clients, etc.), take time and require substantial investment. Regardless of their size and type, all projects share a common set of characteristics that make them different then managing continuous and day-to-day business operations.
Projects are temporary and are designed and implemented in a limited timeframe defined by a start and an end date. Temporary does not necessarily mean short in duration. “The end is reached when the project’s objectives have been achieved or when the project is terminated because its objectives will not or cannot be met, or when the need for the project no longer exists ;
Projects are unique. Every project creates a unique product, service or result and is designed and conducted within a unique context. Projects are not routine operations, but a specific set of operations designed to accomplish a singular goal. Even if repetitive elements may be present in some projects’ deliverables, “this repetition does not change the fundamental uniqueness of the project work. For example, office buildings are constructed with the same or similar materials or by the same team, but each location is unique – with a different design, different circumstances, and different contractors and so on”.
A project comprises interrelated and coordinated activities designed to achieve clearly defined objectives/outcomes. Those activities are carried out through a life cycle.
Projects always face three main constrains which are the scope/quality, budget, costs and time elements. Resources and time are limited, and are often scarcer than you would like. The project seeks to make the best use of them to achieve the greatest possible contribution to the solution of the problem and the attainment of positive changes. Ultimately, this concern is the basis for project planning for any organization or enterprise. It is often needed to mobilise further resources and to look for additional funding in order to tackle the core problem.
More specifically a “development” project in order to be viable and sustainable,, whatever its size and outreach, should be anchored to a few essential guiding principles: The starting point of a project is the existence of a problem affecting a certain group. It can also involve an opportunity to improve that group’s living and working conditions. The existence of a problem affecting a certain group (or groups) is the starting point for many development projects. The description of the problem justifies the need for intervention and the project document will explain how the intended action will contribute to the solution. Sometimes, project ideas are set out in terms of opportunities which may be of strategic interest to the selected group. In these cases, which are more frequent in the business environment, problems are defined in terms of challenges, and the project document is likely to be part of a business plan. Having said that, beginning with a problem or challenge analysis does not mean that the project starts with a negative vision. On the contrary, it will help you to detect conditions that can be improved for the group. In this way, the project will have a positive mission right from the start. It is all about bringing added-value or beneficial changes. A sustainable project is integrated and coherent with broader development or business plans. In a society characterized by multiple challenges and dimensions, a project can increase and improve its impact to the extent that it is an integral part of a larger plan of an organization or enterprise. It may be one component of a multi-annual business plan, or part of a response to a national action plan for private sector development. If it is intended to contribute to development goals and poverty reduction strategies, the project’s core objective must be compatible with and connected to international and national development priorities as well as with the priorities of the organization ordering the project. A project is a participatory exercise from beginning to end Any individual or institution likely to be affected (positively or negatively) by the project must take an active part in its design, decision-making and implementation phases. The formulation, implementation and monitoring of a project proposal is meant to involve all stakeholders. Project design is the product of negotiation and consensus. The methodology and tools presented on this site and in the training are specifically designed to be used in a participatory way, and by different types of audiences. A well-defined project is results-based Results-based management (RBM) is about setting objectives and targets and what you do to achieve them. RBM does not look at the project activities (e.g. a training course for members of an association of migrants) but at the achievements that the project activities bring about (e.g. thanks to the training, the association of migrants better know their rights). RBM helps in assessing the performance of a project. In a world in which there is increasing competition for resources, and in which donors want proof that organizations are achieving tangible results with the funds they receive, also cooperative organizations must demonstrate the added value of their work unequivocally and measurably. Whereas the problem is the project’s starting point, the objectives are the end point. Activities and outputs are the individual components of every project. They are interrelated to create an organised process oriented toward achieving the objectives and producing an impact on the existing environment. To achieve the desired situation, every project is implemented by means of activities, which generate a series of outputs that, in turn, lead to attainment of the objectives. The activities, outputs and objectives have no meaning in themselves, but are means for bringing about a change (impact) that benefits the project’s target group. The cause-effect relationship between the planned action and its desired effects Project Budget → Inputs → Project Activities → Outputs →Objectives Each project has a specific management structure. A project needs a specific team of people in charge of implementing it and supervising a series of administrative and financial procedures. This team is not permanent, but it exists throughout the project. Any project includes a monitoring and evaluation (M&E) system An M&E system allows you to assess the project’s progress toward its objectives, and it provides the basis for any adjustment necessary. It also makes it possible to evaluate and document the project’s performance once the project has finished. An M&E system is an essential tool for results-based project management. It makes the project accountable to the target group, the stakeholders and the donor. It also contributes to organizational learning and to the improvement of projects. That learning can then be transferred and used in other locations and projects. A good evaluation strategy will ensure learning can be passed on to relevant organizations in the sector.
A project has to be sustainable Thorough consideration should always be given to sustainability, especially the future of services and products for the beneficiaries. It also means planning the origin of the resources necessary to continue activities in the medium and long term, once the project has ended. The project is temporary but the results of it should be sustainable. When we say that projects must be sustainable, we refer to content, resource use, size, impact on the environment, and finance. The core elements of sustainability are:
Social sustainability - impact on people conditions, compliance
Financial sustainability - financing of follow-up activities, sources of revenue for all future operating and maintenance costs once the project is ended, etc.;
Institutional sustainability - structures that allow the results of the project to be maintained. Consider local “ownership” of outcomes; What is the project team “exit strategy”? Who will take over once the project is ended?
Environmental sustainability - impact on the environment. Avoid negative effects on natural resources and on the broader environment.
What is the project Cycle? There are different approaches to project design. Many development organizations and donor agencies use project cycle management methodology and the logical framework tool the most. In many cases, they are even mandatory. For the purpose of this programme of training on Project Cycle Management those approached have been selected. Project cycle management Every project has to follow a series of phases, allowing the process to be guided from the moment the problem is identified until it is solved. This series of phases is known as the project cycle. Project cycle management (PCM) is a results-based decision-making tool. Each phase is crucial and should be fully completed before going on to the next. Programming new projects will draw on the final evaluation in a structured process of feedback and institutional learning. Design Design is the starting point of the project cycle. Project design provides the structure of what has to be achieved, how it is to be implemented and how progress will be verified. Therefore the design is the most crucial phase. Its quality will influence the following stages in the project cycle. Too often, little time is devoted to this phase due to scarcity of resources. Designing a project requires an upfront investment. Nevertheless, the less people are willing to invest in designing their project, the higher the risk of compromising its quality when the time for implementation comes. In the case of resources, it is best to allocate a considerable amount to this stage, which can facilitate and improve the quality of analysis and identification of real needs. If financial resources are not available, time is still an important factor, one that can, for instance, contribute to cohesion among stakeholders and familiarity with the context and its main problems and challenges. The project cycle management approach helps to ensure that: • projects are relevant to the real problems of the target groups and make the most of existing opportunities; • projects are feasible: objectives can be realistically achieved within the constraints of the external environment and capacities of the organization; • the benefits generated by the projects are sustainable; Although different formats of the project cycle exist it has the five phases described in the following diagram.
PHASE 1 – DESIGN Designing your project: analysing the situation, formulating your strategy and structure, preparing your implementation plan, budget and planning an M&E system. The design phase is usually made of four succeeding steps to follow in order to design a good, simple and feasible project: Step 1) Project Identification: Identification is a participatory consultative process that analyses the situation and the problem. Step 2) Project Formulation; Once the situation has been analysed and understood, the team in charge of the formulation of the project should establish concrete outcomes (objectives and outputs) to achieve, and outline the actions to be taken and the resources needed. It should also establish proper indicators for each objective. Step 3) Implementation Planning and Budgeting; Then, an implementation plan will be devised, based on the logical framework, in order to have both a results-based work plan and a budget. Step 4) Planning of monitoring and evaluation. Finally, your monitoring & evaluation system will be planned and budgeted for.
PHASE 2 - APPRAISING YOUR PROJECT The appraisal is part of project quality control. It is an analytical assessment of the design to ensure that technical and design standards have been met and that the proposal is consistent with the organization’s strategic or business plan, the priorities of the beneficiaries and the donor criteria before it is presented to a donor to mobilize extra resources for specific projects. Quality control is integrated into the entire project cycle by various means. It should therefore start at the beginning of the design. The project designers must keep quality criteria in mind and must have an appraisal done before submitting the proposal. In the case of a NGO, the appraisal could be done by a small, representative group of beneficiaries, the potential donor and the staff working for the NGO.
PHASE 3- SUBMISSION OF THE PROJECT PROPOSAL TO THE DONOR, AND APPROVAL Once the project document has been formulated, it is submitted to the donor for approval. If approved, a contract (project and financial agreements) will be signed and the project document annexed with the budget and timeline. The objectives should be achieved within the budget and deadlines listed in the document.
PHASE 4 - IMPLEMENTATION AND MONITORING OF THE PROJECT This phase is the concrete implementation of the activities planned in the approved document. The work plan (or implementation plan) is generally prepared at the formulation stage in order to assess its feasibility and plan the needs in terms of human resources, financial resources and time before submission to the donor. In some cases, the work plan will only be prepared if not done at the formulation phase or adjusted. Monitoring takes place throughout the project. It is an internal, participatory process. It allows the implementing organization to see whether the outputs are being achieved and the resources efficiently and effectively used and to take corrective action when needed. In some cases, the project’s management, representatives of the donor or stakeholders may decide that the original design was unrealistic, the internal structure or the budget irrelevant or the management incompetent. Corrective actions to put back the project on the right track may therefore need to be implemented. PHASE 5 - FINAL EVALUATION OF THE PROJECT This is generally conducted at the end of the project to see whether the planned benefits were achieved. Lessons learnt are underlined and could be documented so that they can be replicated or scaled up and integrated into future organizational development strategies and projects.
In managing the project cycle there are usually some golden rules to follow such as the following:
The importance of each phase is recognized
The interdependence of each and every phase is appreciated
Procedures in each phase are stated, responsibility is assigned and the required documentation produced
Sufficient time is set for the first stage before implementation
Consultation, consultation and consultation
…
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Objectives: To review/present the project management definitions and basic concepts
What is a project?
A project can cover a wide range of operations, from small initiatives to complex programmes. For instance, the authority of a small community can run a project to introduce a computerized management information system. This would involve purchasing computers and a software programme and training book-keepers. A more complex programme might be setting up a health micro-insurance scheme through the use of remittances, which would involve many stakeholders (the government, health care providers, advisory services, the diaspora members and their relatives, future clients, etc.), take time and require substantial investment.
Regardless of their size and type, all projects share a common set of characteristics that make them different then managing continuous and day-to-day business operations.
- Projects are temporary and are designed and implemented in a limited timeframe defined by a start and an end date. Temporary does not necessarily mean short in duration. “The end is reached when the project’s objectives have been achieved or when the project is terminated because its objectives will not or cannot be met, or when the need for the project no longer exists ;
- Projects are unique. Every project creates a unique product, service or result and is designed and conducted within a unique context. Projects are not routine operations, but a specific set of operations designed to accomplish a singular goal. Even if repetitive elements may be present in some projects’ deliverables, “this repetition does not change the fundamental uniqueness of the project work. For example, office buildings are constructed with the same or similar materials or by the same team, but each location is unique – with a different design, different circumstances, and different contractors and so on”.
- A project comprises interrelated and coordinated activities designed to achieve clearly defined objectives/outcomes. Those activities are carried out through a life cycle.
- Projects always face three main constrains which are the scope/quality, budget, costs and time elements. Resources and time are limited, and are often scarcer than you would like. The project seeks to make the best use of them to achieve the greatest possible contribution to the solution of the problem and the attainment of positive changes. Ultimately, this concern is the basis for project planning for any organization or enterprise. It is often needed to mobilise further resources and to look for additional funding in order to tackle the core problem.
More specifically a “development” project in order to be viable and sustainable,, whatever its size and outreach, should be anchored to a few essential guiding principles:The starting point of a project is the existence of a problem affecting a certain group. It can also involve an opportunity to improve that group’s living and working conditions.
The existence of a problem affecting a certain group (or groups) is the starting point for many development projects. The description of the problem justifies the need for intervention and the project document will explain how the intended action will contribute to the solution. Sometimes, project ideas are set out in terms of opportunities which may be of strategic interest to the selected group. In these cases, which are more frequent in the business environment, problems are defined in terms of challenges, and the project document is likely to be part of a business plan.
Having said that, beginning with a problem or challenge analysis does not mean that the project starts with a negative vision. On the contrary, it will help you to detect conditions that can be improved for the group. In this way, the project will have a positive mission right from the start. It is all about bringing added-value or beneficial changes.
A sustainable project is integrated and coherent with broader development or business plans.
In a society characterized by multiple challenges and dimensions, a project can increase and improve its impact to the extent that it is an integral part of a larger plan of an organization or enterprise. It may be one component of a multi-annual business plan, or part of a response to a national action plan for private sector development. If it is intended to contribute to development goals and poverty reduction strategies, the project’s core objective must be compatible with and connected to international and national development priorities as well as with the priorities of the organization ordering the project.
A project is a participatory exercise from beginning to end
Any individual or institution likely to be affected (positively or negatively) by the project must take an active part in its design, decision-making and implementation phases.
The formulation, implementation and monitoring of a project proposal is meant to involve all stakeholders. Project design is the product of negotiation and consensus. The methodology and tools presented on this site and in the training are specifically designed to be used in a participatory way, and by different types of audiences.
A well-defined project is results-based
Results-based management (RBM) is about setting objectives and targets and what you do to achieve them. RBM does not look at the project activities (e.g. a training course for members of an association of migrants) but at the achievements that the project activities bring about (e.g. thanks to the training, the association of migrants better know their rights). RBM helps in assessing the performance of a project. In a world in which there is increasing competition for resources, and in which donors want proof that organizations are achieving tangible results with the funds they receive, also cooperative organizations must demonstrate the added value of their work unequivocally and measurably.
Whereas the problem is the project’s starting point, the objectives are the end point.
Activities and outputs are the individual components of every project. They are interrelated to create an organised process oriented toward achieving the objectives and producing an impact on the existing environment.
To achieve the desired situation, every project is implemented by means of activities, which generate a series of outputs that, in turn, lead to attainment of the objectives. The activities, outputs and objectives have no meaning in themselves, but are means for bringing about a change (impact) that benefits the project’s target group.
The cause-effect relationship between the planned action and its desired effects
Project Budget → Inputs → Project Activities → Outputs →Objectives
Each project has a specific management structure.
A project needs a specific team of people in charge of implementing it and supervising a series of administrative and financial procedures. This team is not permanent, but it exists throughout the project.
Any project includes a monitoring and evaluation (M&E) system
An M&E system allows you to assess the project’s progress toward its objectives, and it provides the basis for any adjustment necessary. It also makes it possible to evaluate and document the project’s performance once the project has finished.
An M&E system is an essential tool for results-based project management. It makes the project accountable to the target group, the stakeholders and the donor. It also contributes to organizational learning and to the improvement of projects. That learning can then be transferred and used in other locations and projects. A good evaluation strategy will ensure learning can be passed on to relevant organizations in the sector.
A project has to be sustainable
Thorough consideration should always be given to sustainability, especially the future of services and products for the beneficiaries. It also means planning the origin of the resources necessary to continue activities in the medium and long term, once the project has ended. The project is temporary but the results of it should be sustainable.
When we say that projects must be sustainable, we refer to content, resource use, size, impact on the environment, and finance. The core elements of sustainability are:
What is the project Cycle?
There are different approaches to project design. Many development organizations and donor agencies use project cycle management methodology and the logical framework tool the most. In many cases, they are even mandatory. For the purpose of this programme of training on Project Cycle Management those approached have been selected.
Project cycle management
Every project has to follow a series of phases, allowing the process to be guided from the moment the problem is identified until it is solved. This series of phases is known as the project cycle. Project cycle management (PCM) is a results-based decision-making tool. Each phase is crucial and should be fully completed before going on to the next. Programming new projects will draw on the final evaluation in a structured process of feedback and institutional learning.
Design
Design is the starting point of the project cycle. Project design provides the structure of what has to be achieved, how it is to be implemented and how progress will be verified. Therefore the design is the most crucial phase. Its quality will influence the following stages in the project cycle.
Too often, little time is devoted to this phase due to scarcity of resources. Designing a project requires an upfront investment. Nevertheless, the less people are willing to invest in designing their project, the higher the risk of compromising its quality when the time for implementation comes. In the case of resources, it is best to allocate a considerable amount to this stage, which can facilitate and improve the quality of analysis and identification of real needs. If financial resources are not available, time is still an important factor, one that can, for instance, contribute to cohesion among stakeholders and familiarity with the context and its main problems and challenges.
The project cycle management approach helps to ensure that:
• projects are relevant to the real problems of the target groups and make the most of existing opportunities;
• projects are feasible: objectives can be realistically achieved within the constraints of the external environment and capacities of the organization;
• the benefits generated by the projects are sustainable;
Although different formats of the project cycle exist it has the five phases described in the following diagram.
PHASE 1 – DESIGN
Designing your project: analysing the situation, formulating your strategy and structure, preparing your implementation plan, budget and planning an M&E system.
The design phase is usually made of four succeeding steps to follow in order to design a good, simple and feasible project:
Step 1) Project Identification:
Identification is a participatory consultative process that analyses the situation and the problem.
Step 2) Project Formulation;
Once the situation has been analysed and understood, the team in charge of the formulation of the project should establish concrete outcomes (objectives and outputs) to achieve, and outline the actions to be taken and the resources needed. It should also establish proper indicators for each objective.
Step 3) Implementation Planning and Budgeting;
Then, an implementation plan will be devised, based on the logical framework, in order to have both a results-based work plan and a budget.
Step 4) Planning of monitoring and evaluation.
Finally, your monitoring & evaluation system will be planned and budgeted for.
PHASE 2 - APPRAISING YOUR PROJECT
The appraisal is part of project quality control. It is an analytical assessment of the design to ensure that technical and design standards have been met and that the proposal is consistent with the organization’s strategic or business plan, the priorities of the beneficiaries and the donor criteria before it is presented to a donor to mobilize extra resources for specific projects.
Quality control is integrated into the entire project cycle by various means. It should therefore start at the beginning of the design. The project designers must keep quality criteria in mind and must have an appraisal done before submitting the proposal. In the case of a NGO, the appraisal could be done by a small, representative group of beneficiaries, the potential donor and the staff working for the NGO.
PHASE 3- SUBMISSION OF THE PROJECT PROPOSAL TO THE DONOR, AND APPROVAL
Once the project document has been formulated, it is submitted to the donor for approval. If approved, a contract (project and financial agreements) will be signed and the project document annexed with the budget and timeline. The objectives should be achieved within the budget and deadlines listed in the document.
PHASE 4 - IMPLEMENTATION AND MONITORING OF THE PROJECT
This phase is the concrete implementation of the activities planned in the approved document. The work plan (or implementation plan) is generally prepared at the formulation stage in order to assess its feasibility and plan the needs in terms of human resources, financial resources and time before submission to the donor. In some cases, the work plan will only be prepared if not done at the formulation phase or adjusted.
Monitoring takes place throughout the project. It is an internal, participatory process. It allows the implementing organization to see whether the outputs are being achieved and the resources efficiently and effectively used and to take corrective action when needed. In some cases, the project’s management, representatives of the donor or stakeholders may decide that the original design was unrealistic, the internal structure or the budget irrelevant or the management incompetent. Corrective actions to put back the project on the right track may therefore need to be implemented.
PHASE 5 - FINAL EVALUATION OF THE PROJECT
This is generally conducted at the end of the project to see whether the planned benefits were achieved. Lessons learnt are underlined and could be documented so that they can be replicated or scaled up and integrated into future organizational development strategies and projects.
In managing the project cycle there are usually some golden rules to follow such as the following:
When you have finished reading this section and you feel ready, please click on the following icon to start the quiz for that section